Matthew Wohlman, Deputy Commissioner Minnesota Department of Agriculture House Committee on Agriculture Finance Matthew Wohlman, Deputy Commissioner January 26, 2017

Agenda Overview of Minnesota Agriculture Overview of the MDA Ag Marketing and Development Pesticide and Fertilizer Management Dairy and Meat Inspection Food and Feed Safety Plant Protection Laboratory Services Governor’s FY 18-19 Budget Proposals

Minnesota Agriculture Agriculture is the cornerstone of Minnesota’s economy 90 billion – total output generated 340,000 – total jobs supported 73,600 farms 352 acres – average farm size

Minnesota Agriculture Our agriculture sector is successful because of its diversity Minnesota ranks 5th in crop production and 7th in livestock production Major commodity top rankings: #1 in turkeys, sugar beets #2 in hogs #3 in soybeans, spring wheat #4 in corn #6 in red meat, milk cows, cheese #9 in potatoes #10 in cattle

Minnesota Agriculture Minnesota is home to leading food companies and agribusinesses Fortune 500 Forbes CHS Cargill Supervalue Rosen’s Diversified General Mills Schwan Foods C.H. Robinson Worldwide Land O’ Lakes Hormel Foods Mosaic

Minnesota Agriculture Trade is critical to Minnesota’s ag economy Total agricultural exports: $6.3 billion Soybeans $1,599M Corn $1,275M Pork $740M Wheat $459M Sugar/Products $359M MN ag exports generate: $8.7 billion in total business activities Over 46,000 jobs in all economic sectors

Minnesota Agriculture

Minnesota Agriculture Trends in 2017: Consumer expectations for safe food Increased focus on environment Growth in local, organic foods Growth in international trade Emergence of new biofuels Growing consumer interest in where their food comes from

MDA Mission Our mission is to enhance Minnesotans’ quality of life by ensuring the integrity of our food supply, the health of our environment and the strength of our agricultural economy.

We have two main areas of responsibility: MDA Mission We have two main areas of responsibility: We are the primary state agency responsible for protecting the state’s food supply and a key player in protecting the state’s natural resources. We are the primary agency responsible for supporting and promoting the state’s ag industry and economy.

Minnesota Department of Agriculture MDA Funding Sources – 2017 – not including loan programs

Minnesota Department of Agriculture Commissioner Dave Frederickson Deputy Commissioner Matthew Wohlman Assistant Commissioner Susan Stokes Dairy & Meat Inspection Nicole Neeser Food & Feed Safety Ben Miller Pesticide & Fertilizer Management Joshua Stamper Laboratory Services Gary Horvath Assistant Comissioner Andrea Vaubel Ag Marketing & Development Mary Hanks Plant Protection Geir Friisoe Finance & Budget Steve Ernest Rural Finance Authority Matt McDevitt Human Resources Mandy Papenguth

Ag Marketing and Development Paul Hugunin, Section Supervisor

Ag Marketing and Development What we do: The Ag Marketing and Development Division promotes the production and marketing of Minnesota food, fiber, feed and fuel. We work to foster profitable agricultural pursuits that protect our natural resources while meeting the demands of the marketplace.

Ag Marketing and Development Production Assistance Access to Markets and Business Development Education

Ag Marketing and Development Production Assistance Livestock Emerging ag water and conservation technology Immigrant and underserved farmers Biofuels Local and organic foods Crop research

Ag Marketing and Development Access to Markets Minnesota Grown International Marketing

Ag Marketing and Development Business Development Information resource and support Agricultural Growth Research and Innovation Grant Program (AGRI) Livestock Investment Value Added Business Farm to School Beginning and Transitioning Farmer Trade Show Support Blender Pumps

Ag Marketing and Development Education Minnesota Agriculture in the Classroom

Ag Marketing and Development Performance Measures Percent of elementary and middle schools using Ag in the Classroom’s Ag Mag increased from 40% in 2012 to 46% in 2016 Unique visitors to the MN Grown Directory website increased from 240,000 in 2011 to 308,000 in 2015

Ag Marketing and Development Highlights at Glance 612 farmers and processors attended the 2016 Organic Conference hosted by MDA 75 farmers are using Farm Link to assist with transition of farm ownership

Ag Marketing and Development Highlights At A Glance Annual $10.235 million investment in AGRI matched by $60.3 million in private investment 118 livestock operations assisted with Livestock Investment Grants, 100 were beginning farmers

Ag Marketing and Development FTE’s: 38.2

Pesticide and Fertilizer Management Joshua Stamper, Director

Pesticide and Fertilizer Management What we do: Pesticide regulation Fertilizer regulation Protection of groundwater from ‘ag chemicals’ Emergency response Spills and clean-up Waste pesticide collection Minnesota Agricultural Water Quality Certification Program (MAWQCP)

Pesticide and Fertilizer Management How we do this: We work with farmers, regulated industry and interested parties We employ 123 agronomists, soil scientists, and hydrologists (40% in greater MN) Many staff have graduate degrees, a farm background, and some still farm PFMD Budget ~$27 million/year, mostly from fees and Clean Water Fund

Pesticide and Fertilizer Management Our regulatory activities include: Pesticide/fertilizer product registration Applicator licensing Complaint response Facility inspection Emergency response Anhydrous ammonia regulation

Pesticide and Fertilizer Management Our incident response activities include: Emergency site cleanup Long-term site cleanup Voluntary cleanup Agricultural Chemical Response Reimbursement Account (ACCRA) Superfund

Pesticide and Fertilizer Management We are also responsible for addressing: Non-point source impacts to groundwater from nitrate from fertilizer Non-point source impacts to surface water and groundwater from pesticides Other health or environmental risks from pesticides Water quality monitoring for pesticides and nitrate

Pesticide and Fertilizer Management We seek to: Make decisions based on best available science Protect water resources AND support a strong agricultural economy Involve the agricultural community and other stakeholders in developing practical solutions Build relationships and coordinate with other programs and plans

Pesticide and Fertilizer Management Pesticide non-point activities: Pesticide Management Plan for water resource protection Pesticide Best Management Practices Product registration

Pesticide and Fertilizer Management Fertilizer non-point activities: Nitrogen Fertilizer Management Plan for nitrate in groundwater Fertilizer best management practices (BMPs) Technical assistance for impaired waters Funding priority research Certification of Soil and Manure Testing Labs

Pesticide and Fertilizer Management Water monitoring activities: Long-term pesticide monitoring (25 years) Edge-of-field and tile line monitoring Monitoring private wells for nitrate Coordinate with other monitoring programs Annual monitoring reports

Pesticide and Fertilizer Management MDA Budget by Fund:

Pesticide and Fertilizer Management Dedicated Accounts:

Pesticide and Fertilizer Management Clean Water Fund:

Dairy and Meat Inspection Dr. Nicole Neeser, Director

Dairy and Meat Inspection What we do: Ensure the safety of the food supply by conducting regulatory based inspection work for dairy, meat, poultry and egg products Ensure dairy and meat products and our associated regulatory programs meet the standards necessary for commerce Interstate commerce of dairy products Intrastate commerce of meat and poultry products Respond to emergencies and outbreaks

Dairy and Meat Inspection How we do this: Ensure safe food handling practices are used from the farm to manufacturer during on-site inspections Collect samples to monitor product safety Conduct outreach and educational activities with farmers and manufacturers Certify industry personnel to conduct temporary or cooperative inspection work Provide guidance to prospective or new operators on how to meet the requirements Issue certificates to Minnesota dairy and meat companies so that they can sell their products internationally

Dairy and Meat Inspecction Dairy and Meat Inspection are major program areas Major funding sources are General Fund, fees and Federal 53.4 FTE’s, many support functions cross programs Dairy: 14.25 Field Inspection FTE’s conducted over 8,800 inspections Meat: 16 Field Inspection FTE’s conducted over 11,000 inspections Compliance officers, operations, outreach, audits, supervision, veterinarian

Dairy and Meat Inspection Dairy Inspection Dairy Farms 3026 Grade A, 232 Grade B Manufacturing (62) and Grade A (30) Plants Tankers and Haulers (about 900 licensed) FY 18-19 Budget: $2,406 General Fund (35%) $4,421 Agricultural Fund - Fees (65%) Current Trends: Small dairy manufacturing plants, goat milk production increasing Inspection for Safety, Required for Interstate Commerce Inspection Type Number of Inspections CY 2016 Dairy Farm 7140 Dairy Plant 1308 Tankers 405 Haulers 399 Total 8883

Dairy and Meat Inspection State ‘Equal To’ Meat Inspection Program Small plants can wholesale product in MN Requirements similar to USDA Food Safety Inspection Service Daily Inspection (Continuous) per the Federal Meat Inspection Act Custom Exempt (Not for Sale, for Farmers, Direct Marketing) Budget FY 18-19 $2,280 General Fund, $2,722 Federal Approximately 50%/50% split Trends are increasing ‘Equal To’ plant numbers, more ethnic/nontraditional slaughter and processing Inspections for safety, required to wholesale products Calendar Year Number of New Plants 2014 3 2015 1 2016 6 2017 +10 (expected)

Dairy and Meat Inspection Other Programs Source of Funding FY 18-19 Amount (1,000’s) Northeastern Regional Correctional Institute, Butcher Training Pilot Program Coordination General Fund 150 USDA Shell Egg Surveillance Rest. Special Revenue, 100% Reimbursement Program 38 Poultry Grading 212 State Egg Inspection Agricultural Fund, Fees 84 Drug Residue Prevention Outreach Federal, FDA Cooperative Agreement (Sept 2016 – Aug 2018) 125 Venison Donation Misc Agency (Transfer from DNR) 156

Questions? Matthew Wohlman Matthew.Wohlman@state.mn.us 651-201-6551 www.mda.state.mn.us